Grenier Limited issued $300,000 of 10% bonds on January 1, 2023. The bonds are due on January

Question:

Grenier Limited issued $300,000 of 10% bonds on January 1, 2023. The bonds are due on January 1, 2028, with interest payable each July 1 and January 1. The bonds are issued at face value. Grenier uses the effective interest method. Prepare the company’s journal entries for

(a) The January issuance,

(b) The July 1, 2023 interest payment, and

Fantastic news! We've Found the answer you've been seeking!